NEW DELHI: The Indian government on Friday reduced taxes on petrol and diesel to shield consumers from rising fuel prices caused by the ongoing war in the Middle East.
Finance Minister Nirmala Sitharaman announced that the central excise duty on both petrol and diesel has been lowered by 10 rupees per litre.
“In view of the West Asia crisis, the government has decided to reduce taxes on petrol and diesel for domestic consumption to protect ordinary citizens from price hikes,” she said in a statement.
India imports more than 85 percent of its crude oil needs, making it one of the world’s largest buyers. Russia remains its biggest supplier.
The minister has also imposed new taxes on the export of diesel and aviation turbine fuel. The taxes will be 21.5 rupees per liter for diesel and 29.5 rupees per liter for aviation fuel. The aim is to ensure that there is enough fuel inside the country.
The conflict in the Middle East has led to an increase in oil prices globally. There is also concern over fuel shortages. The tensions were sparked by Iran’s partial restriction of shipping through the Strait of Hormuz.
Oil Minister Hardeep Singh Puri has said that India is keeping an eye on the situation. He has, however, said that India has enough stocks.
“The oil ministry has nearly two months of steady supply available for every Indian citizen, no matter what happens globally,” he said.
Despite these assurances, Indian citizens have started lining up at petrol pumps. There has also been an immediate purchase of electric stoves by many households. There is now a sudden shortage of these in shops and online.
